Friday, August 15, 2008

Cramer - Mad Money - 8/13/08

Cramer - Mad Money - 8/13/08

"How do you buy the stock of a great company, AFTER it's reported a monumental earnings blowout and gone so high.

Thats the question I'm answering for you this week. In order to try and help you make money, off of companies that reported the biggest beats during earnings season, because that means that they will likely outperform the rest of the market.

...

The reason we're focusing on ORB is the fabulous quarter ...unclear... July 17th when the company reported 35 cents a shares. You know, that was actually 12 cents higher than the 23 cent consensus estimate, ...unclear... 52 percent beat.

ORB also raised it's full year guidance from 84 to 89 cent range to 93 to 97 cents. It's a wholesale reevaluation of this company. It booked $425 million in new orders, $4.2 billion backlog. This is a business with a market cap of just $1.5 bill. It's backlog is 2.5 % of the entire company.

Now every time we've seen that it has either produced a takeover or major move, whenever the backlog is that much bigger."

...


Side Note:

LDK's Market Cap is 4.33B, and their backlog is 12,482 MW over the next 10 years. Even assuming a low average ASP over that time of, say, $1 / Watt, gives a backlog of $12,482 Billion, or 2.88 times the Market Cap.

Oh, and they beat by so much more.

How's that sound to ya', Cramer?



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